By Andrea Heisinger
New York, April 17 - AutoZone, Inc. priced $500 million of 3.7% 10-year senior notes on Tuesday at a spread of Treasuries plus 170 basis points, a source close to the trade said.
The paper sold at the tight end of talk in the 175 bps area, plus or minus 5 bps, the source said.
The notes (Baa2/BBB/BBB) were priced at 99.984 to yield 3.702%.
The securities have a make-whole call at 30 bps over Treasuries until Jan. 15, 2022 and a par call after that date. The notes feature a change-of-control put at 101%.
Bookrunners were J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.
Senior co-managers were Bank of America Merrill Lynch, Barclays Capital Inc. and SunTrust Robinson Humphrey Inc.
Deutsche Bank Securities Inc., Fifth Third Securities Inc., KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., Morgan Keegan & Co., Inc. and PNC Capital Markets LLC were the co-managers.
Proceeds will be used for general corporate purposes.
The auto parts and accessories retailer is based in Memphis.
| Issuer: | AutoZone, Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | April 15, 2022
|
| Bookrunners: | J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Senior co-managers: | Bank of America Merrill Lynch, Barclays Capital Inc., SunTrust Robinson Humphrey Inc.
|
| Co-managers: | Deutsche Bank Securities Inc., Fifth Third Securities Inc., KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., Morgan Keegan & Co., Inc., PNC Capital Markets LLC
|
| Coupon: | 3.7%
|
| Price: | 99.984
|
| Yield: | 3.702%
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until Jan. 15, 2022, par call after
|
| Change-of-control put: | 101%
|
| Trade date: | April 17
|
| Settlement date: | April 24
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | Treasuries plus 175 bps area, plus or minus 5 bps
|
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